CDA Claims

Claims and the Contract Disputes Act

In Government contracts, a formal claim filed pursuant to the Contract Disputes Act of 1978 is defined as a “written demand or written assertion by one of the contracting parties seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to the contract.” Federal Acquisition Regulation (FAR) 2.101.

Unless negotiated and settled, a claim forms the basis of adversarial litigation in a federal court of law. A claim for more than $100,000 is subject to the certification requirements of 41 U.S.C. § 7103 and FAR 33.207: “the claim is made in good faith; the supporting data are accurate and complete to the best of the contractor’s knowledge and belief; the amount requested accurately reflects the contract adjustment for which the contractor believes the Federal Government is liable; and the certifier is authorized to certify the claim on behalf of the contractor.” A claim is considered litigation under the Contract Disputes Act, while a Request for Equitable Adjustment (REA) is considered contract administration.